issue Preference shares without dividend

[yash]

Sir, please clarify

The Company has issued in year 2009 non-cumulative redeemable
preference shares. the terms of issue are silent about any dividend.
No dividend is paid by the Company although Company had profits but it
wished to retain the same. The query is :

1. is it possible to issue Preference shares without mentioning the
entitlement as to fixed rate of dividend ??

2. Is it require to pay dividend to the preference shareholders for
the year 2009-10 ??

[pavithra madhwesh]

Dear yash

 

Preference shares must mandatorily mention fixed rate of dividend - atleast 0.01%

 

Regards

Pavithra

 

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Regards
Pavithra
9535574123

[VIKAS GUPTA]

i also think so yar..
As per my knowledge, the preference shares must have some amount of
rate of dividend...
As far as my company has recently 4% cumulative pref. shares as per cdr....

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THANKYOU
CS VIKAS GUPTA
Company Secretary
Shree Krishna Paper Mills & Industries Ltd.
vikas...@skpmil.com
9953620278

[Vivek Aggarwal]

Dear Yash

Yes, it is possible to issue Preference Shares without mentioning the rate of
dividend as it is not compulsory to declare dividends on Preference Shares
unless otherwise provided

If the company has declared dividend on equity shares, it needs to be paid on
Preference Shares also on the same rate. If not declared, not required to pay.

Regards
Vivek Aggarwal

Sir, please clarify

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[Vivek Aggarwal]

Dear Vikas/Pavithra

Can you quote any legal provision in support of your view. I think it is not
compulsory. Pls. clarify.

Regards
Vivek Aggarwal